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Housing and Regeneration Act 2008

Section 32 – Recovery etc. of social housing assistance

60.This section gives the HCA powers in relation to a person who has received financial assistance for the provision of social housing. The HCA may-

  • reduce, suspend or cancel grant payments (or other financial assistance); or

  • direct the recipient of financial assistance by way of grant to:

    a)

    apply or appropriate for such purposes of the recipient as the HCA may specify; or

    b)

    pay to the HCA,

such amount as the HCA may specify.

61.The aggregate of the amounts specified in directions given in respect of that grant cannot be greater than the amount of grant received by that person, although interest may be added to the original amount (see section 33).

62.The powers to recover financial assistance may only be exercised in accordance with principles determined by the HCA.

63.These powers enable the HCA to operate a system similar to the Housing Corporation’s “Recycled Capital Grant Fund” operated under section 27 of the Housing Act 1996. This enables the Housing Corporation to require, as a condition of grant that, for example, when a property grant-funded by the Corporation is disposed of, a sum specified by the Corporation (which could be the amount of original grant, or a proportion of the property value) is either repaid to the Corporation, or is applied by the grant recipient to a purpose specified by the Corporation, such as the provision of new social housing.

64.Subsection (11) requires the HCA to notify the Regulator of Social Housing 14 days before exercising any power under section 32(2), (3) or (4) to reduce, suspend or cancel grant, or require repayment or reapplication of specified sums, in relation to a registered provider of social housing.

65.The HCA must determine in advance of (or at the time of) providing the financial assistance the events in which (and the principles according to which) it will exercise its powers to recover the assistance.

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